Abbott leads states to probe American Airlines-US Airways merger

Abbott leads states to probe American Airlines-US Airways mergerGreg Abbott, the Attorney General in Texas is leading a group of states to join an investigation by the Justice Department into the proposed merger of American Airlines and US Airways.

A spokesman with Abbott's office has confirmed reports that the Texas is leading the group of states that includes 19 attorneys general. The group is concerned that their state might see reduced air connectivity or even lose a flying hub because of a result of a merger. The Justice Department is currently investigating antitrust issues related to the merger.

Meanwhile, a new report by the Government Accountability Office had said that the proposed merger between American Airlines and US Airways is set to reduce the level of competition at a large number of airports in the country. It was found that about 1,665 routes between cities will have one lesser competitor following the merger and affect more than 53 million passengers and a new player will be created in 210 routes impacting 210 routes. The report said that the merger would reduce competition in more number of airports than any merger before.

American and US Air have claimed that the merger would only impact a few number of airports as they overlap on only 12 nonstop routes. On the other hand, the report by GOA also considers connecting routs with one stop.